Secretary of State Theresa Villiers has rejected calls to rule that OTR letters are now invalid.

The so-called comfort letters were brought into sharp focus on Monday when it was revealed during an inquest that an IRA murder suspect was given one just seven years ago.

The scheme was drawn up under Tony Blair’s Labour Government at the request of Sinn Fein.

At least 196 letters were given to republican on-the-runs assuring them they were not being actively pursued by the UK authorities

Ms Villiers yesterday told MPs: “The most effective means to guard against future collapses of trials and future abuse of processes defence is to issue a clear statement to anyone who received a letter that it is not safe to rely on these letters.

“That is what I did.

“The option of legislating was considered but the conclusion is that legislation would not be as effective as a clear statement at the Despatch Box that the scheme is at an end.”

On Monday Armagh court heard an OTR letter was passed to Sinn Fein MLA Gerry Kelly in 2008, who then passed it to a suspect in the 2003 killing of Gareth O’Connor.

And the court was told this happened five years after Mr O’Connor’s father claimed Mr Kelly had assured him the IRA was not involved in the crime and that he would tell him if he was made aware of any development.

A lawyer for Senior Coroner John Leckey described Mr Kelly’s role as a “matter of public concern” and the inquest was halted to allow police to assess whether a prosecution is now possible in the case.

The DUP’s North Antrim MP Ian Paisley Jnr said the most disturbing aspect of the case was that the murder came after the 1998 Good Friday Agreement, yet a suspect received an OTR letter regardless.

Mr Paisley called for the full publication of all recipients and legislation to “formally annul” their value and “put meat on the bones” of Ms Villiers’ statement that they are without value.

And he called for compensation for the families of victims of crime whose cases have been affected by the letters.

Mr Paisley told MPs: “We have been consistently told that the names of the OTRs were critical to securing the Agreement, yet this murder post-dates that occurrence. Would you now publish all of the names with all the letters?

“Could you estimate how many other errors are in this and accept the Government and the Hallett Review, whose conclusion is there is a single error, that that conclusion is now without foundation?

“And would you now consider legislation to formally annul the value of all of these letters to put meat on the bones of what you have said that these letters are without value?

“Would you agree that Gerry Kelly must be formally investigated for how these letters have been distributed?”

Northern Ireland Select Committee chair Laurence Robertson said: “Can the Government ensure the PSNI has the resources to look into all those cases?

“Not in the as much as nine years the PSNI estimated it may take them, so that they can go through those very, very quickly so the Government can decide if there is a need for perhaps legislation in order to make it clear that nobody can rely on these letters to protect them from prosecution?”

Shadow Secretary of State Ivan Lewis reiterated Labour’s apology for errors in the scheme and said it was never intended to cover alleged offences after April 1998.

Mr Lewis said: “We have apologised for the Downey error and do so again for the error in the O’Connor case.

“In the same way as this scheme never offered amnesty, it was never intended to cover alleged offences committed after the Agreement.”